Hisense's sixth IPO is set to debut on the Hong Kong stock market. On March 5, Ligent Technologies, Inc., a supplier of optical communication and connectivity products, submitted a formal listing application to the main board of the Hong Kong Stock Exchange. Citigroup and CITIC Securities are serving as joint sponsors. The company specializes in the research, development, manufacturing, and sale of optical modules, optical chips, and optical network terminals. In terms of market share, Ligent Technologies stands as a leading player in the industry. In 2024, it ranked fifth among global specialized optical module manufacturers by revenue, accounting for 2.9% of the worldwide market. In China, it held a 7.2% market share, ranking third. Notably, the company is controlled by Hisense Group, which holds a 48.61% stake either directly or through its subsidiary Century Jinlong. Should Ligent Technologies successfully list in Hong Kong, Hisense’s portfolio of listed companies will expand from five to six, including Hisense Visual Technology, Hisense Home Appliances, Sanden Holdings, Ganzhao Optoelectronics, and Kelin Electric.

So, what is the investment value of this optical communication leader backed by a major conglomerate?

**Net Profit Soared Eightfold in 2025, but Optical Chip Business Is "Selling More at a Greater Loss"**

As a leading global supplier of optical communication and connectivity products, Ligent Technologies is one of the few companies worldwide with both R&D and mass-production capabilities for optical modules and chips. Its product portfolio includes optical modules, optical chips, and optical network terminals. With its ability to mass-produce and deliver high-quality products for AI, cloud computing, FTTx, transmission networks, and wireless applications, the company serves cloud service providers, telecom and network equipment suppliers, and operators globally.

In recent years, as AI computing power has driven accelerated demand for optical modules, Ligent Technologies has demonstrated strong growth. According to its prospectus, revenue reached 4.239 billion yuan in 2023, 5.087 billion yuan in 2024, and 8.355 billion yuan in 2025, representing year-on-year growth of 20% and 64% in the latter two years, respectively. Optical modules were the core growth driver, with revenue surging from 1.056 billion yuan in 2023 to 5.469 billion yuan in 2025, increasing its contribution to total revenue from 24.9% to 65.5%, largely driven by demand from AI and cloud computing applications.

Alongside rapid revenue growth, the company’s net profit also saw significant fluctuations. Profits for 2023, 2024, and 2025 were 216 million yuan, 89 million yuan (a 59% decline), and 873 million yuan (an 875% surge), respectively. Profit margins for these years were 5.1%, 1.8%, and 10.4%. However, this does not mean Ligent Technologies is without weaknesses. Its optical chip business is "selling more at a greater loss," and its core products appear to be pursuing volume over value, posing unavoidable challenges.

Notably, revenue from the optical chip business—a symbol of core capability—plummeted from 112 million yuan in 2023 to 28.93 million yuan in 2025, accounting for just 0.3% of total revenue. More concerning, gross margins for this segment were deeply negative, at -157.4% in 2024 and -121% in 2025, indicating that revenue failed to cover fixed costs. Meanwhile, the gross margin for data center optical modules declined from 28.9% in 2023 to 24.4% in 2025, significantly lower than the approximately 40% margin achieved by industry leader Zhongji Innolight. Ligent’s average selling price is only about one-third that of leading players, suggesting an aggressive pricing strategy to capture market share.

These factors have contributed to the company’s below-average gross margin within the industry. From 2023 to 2025, overall gross margins were approximately 20.62%, 17.36%, and 20.02%, respectively. While Ligent Technologies has successfully capitalized on industry trends to achieve rapid revenue growth, its profitability and financial quality remain subjects for further scrutiny.

**Positioned in a High-Growth Sector, Long-Term Prospects Appear Promising**

If GPUs are the "heart" of AI-era computing power, optical modules serve as the high-speed "blood vessels" connecting massive computing nodes, with optical chips acting as the core "engine." This implies that Ligent Technologies’ optical communication sector is poised for strong growth, driven by increasing connectivity demands—especially from AI computing networks—in the coming years.

The global optical module market, a core component of optical communication and connectivity, is projected to reach 295.4 billion yuan by 2029, growing at a compound annual growth rate (CAGR) of 18.5% from 2024. Within this, the data center optical module segment is expected to grow at a CAGR of 20.4% from 2024 to 2029, while the telecom optical module market is forecast to expand at a CAGR of 14.6%. The global optical chip market is also expected to maintain robust growth, rising to 66.5 billion yuan by 2029, with a CAGR of 21.7%. As emerging technologies push the limits of speed, integration, and energy efficiency, optical chips are likely to remain fundamental enablers of next-generation optical communication.

Additionally, driven by the rapid global deployment of FTTx networks and growing demand for high-speed, stable connections, the worldwide market for optical network terminal units is projected to grow to 71.8 billion yuan by 2029, at a CAGR of 10.2%.

Against this backdrop, Ligent Technologies has leveraged forward-looking technology development and vertical integration to ride the industry wave. The company is one of the first domestic manufacturers to achieve mass production of 800G high-speed optical modules. It has delivered samples of 1.6T optical modules for validation and is developing next-generation 3.2T products, keeping pace with industry technology cycles. As one of the few global companies with in-house R&D and mass-production capabilities for both optical modules and chips, it has achieved volume production of 75mW high-power DFB laser chips and is developing advanced 100G/200G EML laser chips.

That said, not all aspects of Ligent’s market position are favorable. On one hand, the optical module industry is highly dependent on downstream capital expenditure, leading to significant cyclical fluctuations. The company’s financial results are indicative: net profit fell 58.5% in 2024 due to industry-wide inventory adjustments, then surged 875% to 873 million yuan in 2025 amid booming AI demand. This pattern of strong growth coupled with high volatility is characteristic of the sector.

On the other hand, despite a large addressable market, competition is intense. Leading players like Zhongji Innolight and Eoptolink command high margins with their advanced high-speed products, while second-tier manufacturers face challenges in scaling and technology. High-end optical chips, such as 100G EML, still present technical barriers, leading some companies to experience revenue growth without corresponding profit improvements or excess capacity in low-end segments.

In summary, as a contender in the AI computing wave, Ligent Technologies holds promising long-term growth potential, but its risks cannot be overlooked. Key questions remain: Can it escape the low-margin trap of trading price for volume? Can its optical chip business turn profitable and truly leverage vertical integration? The answers will be critical to realizing its investment value.